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Shopify, the global ecommerce platform, has issued a warning to the millions of companies that use its platform: you better get cyber insurance for small business. “Shopify secures its platform, but you’re responsible for your store’s data. Learn why cyber insurance is essential for protecting your business from data breaches, phishing, and app risks,” the company warns in a December 20th post. It’s a clear signal that Shopify sees cyber risk as one of the biggest threats to the future of online retail — and believes cybersecurity insurance is a key element of risk mitigation. Shopify has wide influence in the world of e-commerce — the company reportedly has almost five million active shops on its platform and accounts for billions of dollars in annual revenue, by some estimates supporting more than 10% of global e-commerce and almost 30% of US online retail. Given this reach, Shopify’s 2025 “merchant guide” is among the most powerful endorsements yet of the need for SMBs to buy cyber insurance.
As we’ve report frequently in the past, the need for cyber insurance for small business couldn’t be more urgent. Average breach costs have climbed to $4.4 million globally, with small-to-medium businesses reportedly facing claims averaging $205,000—and up to nearly $1 million when business interruption is factored in.
The guide is not selling Shopify’s own insurance product; it’s an educational push to get merchants protected. Published on the Shopify Enterprise Blog, the post titled “Do You Need Shopify Cyber Insurance? A 2026 Merchant Guide” outlines the basics of cyber insurance, such as first-party coverage (ransomware payments, data restoration) and third-party liability (lawsuits, regulatory fines).
Recommendations on Cyber Insurers and Questions to Ask
The detailed post also lists reputable providers such as Chubb and Hiscox and stresses that most policies require basic security measures—like multi-factor authentication—to qualify for coverage or discounts.
Among recommendations in the Guide:
“While shopping around, ask insurance agents about the following:
Optional coverages: Inquire about additional coverages that might be beneficial, such as cyber liability or equipment breakdown insurance.
Discounts: Some providers may offer discounts for bundling policies or implementing certain safety measures.
Claims process: Understand how they handle claims and if the provider has a good reputation for fair and timely claims processing.”
Shopify Understands the Threat of Breaches
For the broader e-commerce industry, this is a pivotal moment. Third-party app compromises—responsible for a surge in retail breaches—highlight vulnerabilities that individual merchants often can’t fully control. Cyber insurance shifts some of that financial risk to carriers, while encouraging better security hygiene. For insurance providers, Shopify’s recommendation could accelerate demand, especially as policies for small retailers start at just a few thousand dollars annually.
Shopify’s own history underscores why this guide matters. In 2020, two rogue support employees stole customer data from nearly 200 stores, exposing emails, names, addresses, and order details—an incident that led to an FBI investigation. Although Shopify blamed insiders rather than a system-wide hack, the breach damaged trust. In 2021, hackers exploited platform vulnerabilities to drain thousands of dollars from merchant accounts. In 2024, a third-party app compromise again leaked customer data.
If hackers could succeed in such attacks against one of the largest and most savvy online companies in the world, small online retailers better get prepared, and buy cyber insurance for small business.
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